Oil rose in New York, trading 1 percent higher, on speculation U.S. refiners may increase purchases to meet higher gasoline demand during the summer holidays and stockpile heating oil for winter. U.S. refiners have increased crude oil inventories 13 percent this year in expectation of rising demand and concern about supply disruptions. About 40.3 million Americans were forecast to travel more than 50 miles from home for the July 4 weekend, a record for any U.S. holiday, the AAA said. The peak driving season ends in early September. ``Demand is the main fundamental that has been driving up prices,'' said Gerard Burg, minerals economist with National Australia Bank in Melbourne. ``If you want to go driving during your holidays, what are you going to do? You've got to fill up the tank.'' Oil for August delivery rose as much as 64 cents, or 1 percent, to $59.39 a barrel in after-hours trading on the New York Mercantile Exchange. Oil prices rose to a record $60.95 a barrel on June 27. Futures have risen past month on concern U.S. refiners will strain to meet demand for gasoline and rising demand for diesel and jet fuel from the trucking and aviation industries. The August contract rose $2.25, or 4 percent, to $58.75 a barrel on July 1, the biggest one-day gain in a month. The exchange was closed yesterday for the U.S. Independence Day holiday.